S Y L L A B U S

MASTER OF FINANCIAL ANALYSIS

AND CONTROL

M.F.C. Previous Examination, 2015

M.F.C. Final Examination, 2016

Printed at :

SHANTA PRINTERS & STATIONERS, JODHPUR

JAI NARAIN VYAS UNIVERSITY

JODHPUR

S Y L L A B U S

MASTER OF FINANCIAL ANALYSIS

AND CONTROL

M.F.C. Previous Examination, 2015

M.F.C. Final Examination, 2016

N O T I F I C A T I O N

In compliance of decision of the Hon'ble High Court all

students are required to fulfil 75% attendance rule in each

subject and there must be 75% attendance of the student

before he/she could be permitted to appear in the

examination.

REGISTRAR

(Academic)

JAI NARAIN VYAS UNIVERSITY

JODHPUR

DEP ARTMENT OF BUS INES S FINANCE & ECONOMI CS

FAC ULTY OF COMMERCE & MANAGEMENT STUDI ES

JAI NARAI N VYAS UNI VERS ITY, JOD HPUR

LIST OF STAFF MEMBERS

HEAD OF THE DEPARTMENT

1 Dr. Sumnesh Nath Modi, Professor and Head

PROFESSORS

2 Dr. Amrit Lal Jingar

3 Dr. Mahendra Singh Rathore

4 Dr. Raman Kumar Dave

ASSOCIATE PROFESSORS

5 Dr. Mohammed Abdul Hai

6 Dr. Triloki Nath Verma

7 Mrs. Padma Singhal

8 Dr.(Mrs.) Jatan Kanwar Jain

9 Dr. Narendra Kothari

10 Dr. Ram Singh Meena

11 Dr. Sunil Mehta

12 Dr. Dungar Singh Kheechee

13. Dr.Mahendra Kumar

14. Dr.(Mrs.) Navneeta Singh

15. Dr.Krishn Awatar Goyal

ASSISTANT PROFESSORS

16. Mrs. Anju Agarwal

17. Dr.Kshitiz Maharshi

18. Mr.Rajendra Prasad Meena

Contents General Information for Students 1

Teaching and Examination Scheme 4 M.F.C. (Previous) 6

M.F.C. (Final) 27

MFC. 2

DEPARTMENT OF BUSINESS FINANCE AND

ECONOMICS

Master of Financial Analysis and Control (M.F.C)

General Information for Students

The objective of course is to provide a thorough and comprehensive

knowledge of different aspects of financial control.

Eligibility for Admission :

Post-Graduate or Graduates from any discipline securing minimum 50%

marks at Degree level are eligible for admission.

Admission Procedure :

Admission of a candidate will be subject to a merit ascertained by

the performance of G.D. and interview conducted by the Head of the

B.F.E. Department of the Jai Narain Vyas University.

SCHEME OF EXAMINATION

1. A candidate admitted to Master of Financial Analysis and Control

may be admitted to the examination after completing the regular

course of studies prescribed for the examination which shall be

of two years duration comprising of four semesters.

2. There shall be separate course of studies for each semester and

there shall be separate examination for each semester. The course

of studies and examination in relation there shall comprise of

theory papers, viva-voce, Project Report, as indicated in the course

design, and examination scheme.

3. If a candidate fails to appear at an examination he or she shall

not be permitted to take the subsequent examination and

therefore, shall have to reappear at the examination. Thus such

candidate shall not be promoted to the next semester, if he/she has

not appeared at one or more of the next semester. If he/she has not

appeared at one or more of the papers in the concerned semester

examination.

4. However, a candidate may be promoted to the next semester. If

he/she fails in only one paper in the examination of the

semester. Such candidate may be permitted to make up the

deficiency at a subsequent but regular and scheduled examination

only. There shall be no makeup or special examination for

making up such deficiency. Also a candidate appearing at an

examination to make up the deficiency shall have to appear at such

examination based on the course of studies in force at the time

unless the paper itself no longer forms that part of the course of

studies. In such eventuality the course of study soon before the

deletion shall be deemed to be

relevant. However, the Department shall have no responsibility to

organize and impart teaching in the paper in which the

candidate has got deficiency. Those candidates who

appeared at the subsequent examination for clearing deficiency

and passed shall be awarded the actual marks obtained but in no

case it will be more then 60% of the maximum marks in the

concerned paper, irrespective of the marks secured by them at

the subsequent examination.

5. After the fourth semester examination the result will be declared

and M.F.C. degree will be awarded when a candidate passes all the

examinations in respect of all the four semester including those

paper(s) for which deficiency, if any is to be makeup.

6. Candidate will have to obtain atleast 25% marks in each paper

separately and 36% in aggregate at I to IV semester examination

i.e. M.F.C. (Previous) & M.F.C. (Final). The degree will be

awarded on the following basis :

Division Per cent of marks

First with Honours 70% and above

First 60% and above but less than 70%

Second 48% and above but less than 60%

Third 36% and above but less than 48%

7. The students of M.F.C. shall be required to under go internship in

an organization approved by the Head of the Department as a

part of the course of studies for a period of two months and

submit a report which will be subject to examination as

indicated in the course design.

8. The candidate will be required to submit report/dissertation as per

the course design i.e. in III Semester. These will be prepared under

the supervision of teacher(s) teaching in the Department. The

subject of the report/dissertation will be decided in consultation

with the teacher concerned but subject to the approval of the Head

the Department of B.F.E.

9. The candidate will submit internship report prepared in relation to a

Financial Institution, Bank, Financial service Unit, Stock Exchange

etc. as approved by the Head of the Department and shall be

evaluated by the Head of the Department and shall be evaluated by

an external examiner and shall carry the marks as indicated in

course design.

1.1 Mgt. Concepts and Organisational Behaviour 6 50 3

1.2 Financial Institutions and Markets 6 50 3

1.3 Managerial Economics 6 50 3

1.4 Statistical Analysis 6 50 3

1.5 Financial and Cost Accounting 6 50 3

1.6 Marketing Management 6 50 3

1.7 Financial Management 6 50 3

1.8 Viva-Voce 50

SEMESTER II

2.1 Accounting for Managerial Decisions 6 50 3

2.2 Computer Application in Business 6 50 3

2.3 Business Environment 6 50 3

2.4 Corporate Legal Framework 6 50 3

2.5 Investment Management 6 50 3

2.6 Security Market Operations 6 50 3

2.7 Funds Management in Commercial Banks and

Insurance Sector 6 50 3

2.8 Viva-Voce 50

MFC. 3 MFC. 4

10. The language of instructions and examination in each course shall

be English.

11. In order to be eligible to take examination each candidate shall have

to fulfill minimum attendance requirement rules and

regulations prescribed by the University from time to time and

shall not seek Part-time employment or full time employment

during the tenure of two years course of studies.

12. The examination for the award of degree in M.F.C. will consist of

the following :

Written examination of three hours duration in following papers in

Previous and Final consisting of two semesters each with a teaching of 6

period per week as mentioned below:

Fee Rs. 20,000/- will be charged annually payable at the time of

Admission of M.F.C. Previous and M.F.C. Final. Total Tuition Fee Rs.

40,000/- for two years. This includes fee of Rs. 500/- which will be

utilised for Books, Study Material Computers or an other academic

activity or extracurricular Activities (subject to revision ). Students Union

Fee of Rs. 670/- will be payable in cash separately.

SCHEME OF EXAMINATION

The examination for the award of degree in M.F.C. will consist of the following :

Written examination of three hours duration in the following papers in Previous

and Final year with a teaching of 6 periods per week as mentioned below :

M.F.C. PREVIOUS

S.No. Name of the Paper Pds. Marks Exam.

Hours.

SEMESTER I

MFC. 5 MFC. 6

M.F.C. FINAL

S.No. Name of the Paper Pds. Marks Exam.

Hours.

SEMESTER III

3.1 Operations Research 6 50 3

M.F.C. Previous Examination

SEMESTER I

1.1 : MANAGEMENT CONCEPTS AND ORGANISATIONAL

BEHAVIOUR

3.2 Financial Services Marketing 6 50 3

3.3 International Finance 6 50 3

3.4 Portfolio Management 6 50 3

3.5 E-Commerce 6 50 3

3.6 Corporate Tax Planning and Management 6 50

3.7 Training Report and Presentation 50 3

3.8 Viva-Voce 50

SEMESTER IV

4.1 Strategic Management 6 50 3

4.2 Project Planning and Control 6 50 3

4.3 Strategic Financial Management 6 50 3

4.4 Management Information System 6 50 3

4.5 Multinational Financial Management 6 50 3

4.6 Derivatives and Risk Management 6 50 3

4.7 Project Report and Viva-Voce 50+50=100

Objective :

The objectives of this course is to help students understand the Conceptual

framework of management and organisational behaviour

Course Inputs :

1. Schools of Management Thought : Scientific process, human

behaviour and social system school : Decision theory school Quantitative

and system school : Contingency theory of Management : Functions of

Manager.

2. Managerial Functions: Planning-concept, significance, types,

Organising-concept, principles, theories, types of

organizations, authority, responsibility, power, delegation

decentralization, Staffing; directing: Coordinating, Control-nature,

process and techniques

3. Organisational Behaviour : Organisational behaviour-concept and

significance: Relationship between management and organizational

b e h a v i o u r ; E m e r g e n c y a n d e t h i c a l p e r s p e c t i v e A t t i t u d e s ;

Persiption; Learning; Personality; transactional analysis

4. Motivation : Process of motivation; Theorise of motivation-need

hierarchy theory, theory X and theory Y, two factor theory'

Aldrefer's ERG theory , Mc-Cleland's learned need theory, Victor

Vroom's expectancy theory, Stacy Adams equity theory

5. Group Dynamics and term Development: Group dynamics-

definition and importance, types of groups, group formation, group

development, group composition, group formation, group

development, group composition, group performance factors;

Principle-centered approach to term development

6. Leadership: Concept, Leadership Styles; Theories. Theory,

behavioural theory, Fleders systems of leadership

7. Organisational Conflict: Dynamics and management; sources

patterns. Levels and types of conflict, Functional and dyfunctional

organizational conflicts; Resolution of conflict

8. Interpersonal and Organisational communication: Concept of two- way

communication; Communication process; Barriers to effective

c o m m u n i c a t i o n ; C o m m u n i c a t i o n ; T y p e s o f o r g a n i z a t i o n a l

communication; improving communication.

9. Organisational Development: Concept: Need for change, resistance

to change; Theories of Planned change, Organisational diagnosis;

On intervention

MFC. 7 MFC. 8

REFERNCES

Griffin, Ricky W.: Organisational Behaviour, Houghton Miffin Co.,

Boston

Hellreget Don, John W. Slocum, Jr. and Richard W. Woodman : South

Western College Publishing, Ohio

Hersey, Paul, Kenneth H, Blanchard and Dewey E. Johnson:

Management of Organisational Behaviour : Utilising Human Resource,

Prentic Hall, New Delhi

Ivancevich John and Micheeol, T. Matheson : Organisational. Behaviour

and Management, Business Publication Inc., Texas Koontz, Harold, Cyril

O”Donnell and Heinz Weithrich: Essential of Management, Tata McGraw

Hill, New York

Newstrom, John W. and Keith Davis : Organisational Behaviour: Human

Behaviour at work, Tata McGrawHill, New Delhi

Robbins, Stephen P. and Mary Goulter : Management, Prentice, Hall,

New Delhi

Robbins, Stephen P.: Organisational Behaviour, Prentice Hall, New

Delhi

Steers, Richard M. and J. Stewart Black : Organsiational Behaviour,

Harper Collins College Publisher, New York

Sukla, Madhukar : Understanding Organisation, Organisation Theory

and Practice in India, Prentice Hall, New Delhi

1.2 FINANCIAL INSTITUTIONS AND MARKETS

Objectives:

This course aims at providing students with an understanding of structure,

organization and working of financial markets and institutions in India.

Course Inputs:

1. Introductions : Nature and role of financial system : Financial

System and financial markets; Financial System and economic

development, Indian financial system-an overview

2. Financial Markets : Money and capital markets; Money market;

Meaning, constituents functions of money market. Money market.

Money market instruments-call money, treasury bills, certificates

of deposit, commercial bills, trade bills etc. Recent trends in

Indian money market; Capital market-primary and secondary

markets; Depository system, Government securities market; Role

of SEBI- an overview; Recent developments

3. Reserve Bank of India : Organisation, management and functions;

credit creation and credit control; Monetary policy

4. C o m m e r c i a l B a n k s ; M e a n i n g f u n c t i o n s , m a n a g e m e n t a n d

investment policies of commercial banks; Present structure; E-

banking and e-trading; Recent development in commercial banking

5. Development Banks : Concept, objectives and functions

of development banks; Operational and promotional activities

of development banks; IFCI, ICCI, IDBI, IRBI, SIDBI

State Development Banks, State Financial Corporations

6. Insurance Sector : Objectives, role, investment practices of LIC

and GIC; Insurance Regulatory and Development Authority-role

and functions

7. Unit Trust of India : Objectives functions and various Schemes of

UTI, Role of UTI in industrial finance

8. N o n - B a n k i n g f i n a n c i a l I n s t i t u t i o n s , C o n c e p t a n d r o l e o f

nonbanking financial institution; Sources of finance, Functions

of nonbanking financial institutions; Investment policies of

non- banking financial institutions in India

9. Mutual funds : Concept, performance appraisal and regulation of

mutual funds (with special reference to SEBI guidelines)

Designing and marketing of mutual funds schemes; Latest mutual

funds schemes in India-an overview

10. Merchant Banking : Concept, functions and growth; Government

policy on merchant banking systems; SEBI guidelines, Future of

merchant banking in India

11. Interest Rate Structure : Determinations of interest rate structure;

Differential interest rate; Recent charges in interest rate structure

Foreign investments : Types, trends and implications; Regulatory

framework for foreign investments in India

REFERENCES

Avdhani : Investment and Securities Markets in India, Himalaya Pub.,

Delhi

Bhole, L.M. : Financial Markets and Institutions, Tata McGraw Hill,

Delhi

Ghose, D. : Banking Policy in India, Allied Publications, Delhi

Giddy, I.H. : Global Financial Markets, AITBS, Delhi

Khan, M.Y. : Indian Financial System, Tata McGraw Hill, Delhi

Reserve Bank of India, Various Reports, RBI Publications, Mumbai

MFC. 9 MFC. 10

Varshney, T.D. : Indian Financial System, Sultan Chand & Sons, New

Delhi

Averbach, Robert D.: Money, Banking and Financial Markets,

MacMillan, London

Srivastava, R.M. : Management of Indian Financial Institution; Himalaya

Publishing House, Mumbai

Verma, J.C. : Guide to Mutual Funds and Investment Portfolio, Bharat

Publishing House, New Delhi

1.3 MANAGERIAL ECONOMICS

Objectives:

This course develops managerial perspective to economic fundamentals

As aids to decision making under given environmental constraints

Course Inputs:

1. Nature and Scope of Managerial Economics: Objective of a firm;

E c o n o m i c t h e o r y ; M a n a g e r i a l e c o n o m i s t ' s r o l e a n d

responsibilities. Fundamental economic concepts, incremental

principle, opportunity cost principle, discourting principle, equip-

marginal principle

2. Demand Analysis : Individual and market demand functions; Law

of demand determinants of demand; Elasticity of demand,

its meaning and importance; price elasticity income elasticity

and cross elasticity, Using elasticity in managerial decision

3. Theory of consumer Choice : Cardinal Utility approach,

indifference approach, revealed preference and theory of consumer

choice under risk, Demand estimation for major consumer, durable

and non-durable products

4. Production Theory : Production function- production with one and

two variable inputs; Stages of production : Economics of scale;

Estimation of production function, Cost theory and estimation,

Economic value analysis, Short and long run cost functions-their

nature, shape and inter-relationship. Law of variable proportions,

Law of returns to scale

5. P r i c e D e t e r m i n a t i o n u n d e r D i f f e r e n t M a r k e t C o n d i t i o n s :

Characteristics of different market structures; Price determination

and firm's equilibrium in short-run and long-run under perfect

competition, monopolistic oligopoly and monopoly

6. Price Practices : Methods of Price determination in practice,

Pricing discrimination, International price discrimination and

dumping. Transfer pricing

7. Business Cycles : Nature and phase of a business cycle : Theories

of Business cycle, monetary, innovation Samuelson and

Hicks theories

REFERENCES

Baumol, William J. : Economic Theory and Operations Analysis, Prentice

Hall, London

Baya, Micheal R. : Managerial Economics and Business Strategy,

McGraw Hill Inc, NewYork

Chopra, O.P. : Managerial Economics, Tata McGraw Hill, Delhi

Dean, Joel : Managerial Economics, Prentice Hall, Delhi

Dholkia, R.H. and A.L. Oza : Micro Economics for Management

Students, Oxford University Press, New Delhi

Eaton, B. Curtis and Diane Faton : Micro Economics, Prentice Hall,

New Jersey

Cough J. and S. Hills : Fundamentals of Managerial Economics,

MacMillan, London

Hayness W.W., V.L. Mote and S. Paul : Managerial Economic Analysis

and Cases, Prentice Hall India, Delhi

Petersen, H. Crag and W. Cris Lewis : Managerial Economics, Prentice

Hill, Delhi

Salvatore, Dominick : Managerial Economics in a Global Economy,

McGraw Hill, New York

Vershney, R.L. and Maheshwari, K.L. : Managerial Economics, Sultan

Chand and Sons, New Delhi

Varshney, R.L.: International Micro Economics : A Modern East-West

Press, New Delhi

Dwivedi, D.N. : Managerial Economics, Vikas Publishing House, New

Delhi

Adhikary, M. : Buisness Economics, Excel Books, New Delhi

MFC. 11 MFC. 12

Objective :

1.4 : STATISTICAL ANALYSIS REFERENCES

Hooda, R.P. : Statistics for Business and Economics, MacMillan, New

The objective of this course is to make the students learn the

application of statistical tools and techniques for decision making

Course Inputs :

1. Univeriate Analysis : An overview of central tendency, dispersion

and skewness

2. Probability Theory : Probability classical relative and subjective

probability, Addition and multiplication probability

models, Canditional probability and Bay's theorem

3. Probability Distributions : Binomial, Poission and normal

distribution. Their characteristics and applications

4. Statistical Decision Theory : Decision environment. Expected

profit under uncertainly and assigning probabilities, Utility theory

5. Sampling and Data Collection : Sampling and sampling (Probability

and non-probability) methods, Sampling non-sampling errors, Law

of Large Number and Central Limit Theorem; Sampling

distributions and their characteristics

6. Data sources-primary and secondary : Primary data collection

techniques- schedule, questionnaire and interview

7. Statistics Estimation Testing Point and interval estimation of

population mean, proportion and variance, Statistical testing

hypotheses and errors, Sample size, Large and small sampling test-

Z tests, T tests and F tests

8. Non Parametric Tests : Chi-square tests, Sign tests, Wilcoxon

signed Bank tests, Wald Welfewifz tests, Krushal

9. Co-relation and Regression Analysis : Two variable case

10. Index Numbers : Meaning and types : Weighted aggregative

Indices- Laspeyre's and Paasch's indices, Laspeyre's and Paasch's

indices compared; Indices of weighted average of (price quantity)

relatives : Tests of adaquancy; Special Problum-shifting the base;

splicing overlapping index series; Uses and problems

11. Statistical Quantity control : Causes of variations in quality

characteristics; Quantity control-purpose and logic; constructing a

control chart-computing the control limit (X and R chart) : Process

under control and out of control Warning limit; Control charts for

attributes-fraction defectives and number of defects : Acceptance

sampling

Delhi

Heinz, Kohler : Statistics for Business & Economics, Harper Collins,

New York

Hips, L.W. : Quantitative Approach to Managerial Decisions, Prentice

Hall, New Jeresy

Lawrence B. Morse : Statistics for Business and Economics, Harper

Collins, New York

Levin, Richard I. and David, S. Rubin : Statistics for Management,

Prentice Hall, Delhi

Watsman Terry J. and Keith Parmar : Quantitative Methods in Finance,

International Thompson Business Press, London

1.5 : FINANCIAL AND COST ACCOUNTING

Objective :

The objective of this course is to enable students understand

accounting concepts, tools and techniques used for taking managerial

decisions.

Course Inputs :

A. FINANCIAL ACCOUNTING Weightage 20 Marks

1. I n t r o d u c t i o n : N a t u r e , s c o p e a n d i m p o r t a n c e o f f i n a n c i a l

a c c o u n t i n g : B a s i c a c c o u n t i n g c o n c e p t s a n d c o n v e n t i o n s ;

Recognition of revenues and expenses; Accounting cycle and

accounting equation, G.A.A.T. and accounting standards-Indian

and international

2. Accounting Books and Final Accounts : Journal, cash book, sales

book, purchase book etc., Preparation of trial balance, Profit

and Loss account and balance, sheets; Bank reconciliation

statement

3. Account for issue and redemption of shares and debentures

4. Final accounts of companies-an overview

5. Valuation of Good will and shares

6. Final accounts of non-profit organizations

B. COST ACCOUNTING Weightage 30 Marks

1. Cost Accounting : Meaning, importance and scope of cost

accounting : Elements of cost material, labour and overhead costs,

Method and types of costing; cost classification; cost sheet

MFC. 13 MFC. 14

2. Cost Ascertainment : Unit costing; Job costing; Process costing;

contract costing

Objective :

1.6 : MARKETING MANAGEMENT

3. Differential costing : Incremental costing : Product line costing

4. Reconciliation of cost and financial accounts

REFERENCES

Beams, F.A. : Advanced Accounting , Prentice Hall, New Jersey

Gearden, J. and S.K. Bhattacharya : Accounting for Management, Vikas

Publishing House, New Delhi

Engler, C.L.A. Bernstien and K.R. Lambert : Advanced Accounting,

lrwin, Chicago

Fisher, P.M.,WJ. Taylor and J.A. Leer : Advanced Accounting, South-

Western, Ohio

Gupta, R.L. : Advanced Financial Accounting, S. Chand & Co., New

Delhi

Homgren, Charies T. George Foster and Srikant M. Datar : Cost

Accounting : A Managerial Emphasis, Prentice Hall, India, Delhi

Keio D.E. and J.J. Weygandt : Intermediate Accounting, John Willey and

Sons, N.Y.

Monga J.R. : Advanced Financial Accounting, Mayoor Paperbacks,

Noida

Narayanaswamy R. : Financial Accounting : A Managerial Perspective,

Prentice Hall, Delhi

Needles Jr. B.E. H.R. Anderson and J.C. Caldwell : Financial and

Managerial Accounting, Houghton Miffin Co., Boston

Shuktla, M.C. and T.S. Grewal : Advanced Accountancy, S. Chand &

Co., New Delhi

Warren, C.S. and P.E. Fces: Principles of Financial and Manageril

Accounting, South Western, Ohio

Neigs, R.F. : Financial Accounting, Tata McGraw Hill, New Delhi

The objective of this course is to enable students understand of the

conceptual framework of marketing and its application in decision making

under various environmental constraints.

Course Inputs :

1. Introduction : Concept, nature, scope and importance of marketing;

Marketing concept and its evolution, Marketing mix; Strategic

Marketing Planning-an overview

2. Market Analysis and Selection : Marketing environment macro and

micro components and their impact on marketing decisions.;

Market segmentation and positioning; buyer behaviour, Consumer

verses orgnisational buyers ; Consumer decision-making process

3. Product Decisions : concepts of a Product; Classification of

Products, Major Product decisions. Product line and Product mix

Branding, Packaging and labeling, Product life-cycle.

Strategic implications, New product development and consumer

adoption process

4. Distribution Channels and Physical distribution Decision : Nature,

functions and types of distribution channels, Distribution Channel

intermediaries, Channel management decisions, Retailing and

wholesaling

5. Promotion Decisions : Communication Process : Promotion mix

advertising personal selling, sales promotion, Publicity and Public

relations, determining advertising budget Copy designing and its

testing. Media selection, Advertising effectiveness,

Sales Promotion tools and techniques

6. Marketing Research : Meaning and scope of marketing research :

Marketing research process

7. Marketing Organisation and Control : Organising and controlling

marketing operations

8. Issues and Developments in Marketing : Social, Ethical and legal

aspects of marketing, Marketing of services:

International Marketing, concept and Modes of entering Foreign

markets. Green marketing : Cyber marketing : Relationship in

marketing and other developments in marketing

REFERENCES

Kotler, Philip and Gray Armstrong : Principles of Marketing, Prentice

Hall, New Delhi

MFC. 15 MFC. 16

K o t l e r , P h i l i p : M a r k e t i n g M a n a g e m e n t - A n a l y s i s , P l a n n i n

g

Implementation and Control, Prentice Hall, New Delhi

Majumdar, Ramanuj : Product Management in India, Prentice Hall, New

Delhi

Mc Carthy, E. Jenome and William D. Perreault : Jr. Basic Marketing:

Managerial Approach, Richard Irwin, Hoomwood, Illinois

Ramswamy V.S. and Namakumari S. : Marketing Management,

McMillan India, New Delhi

Srinivasan, R.: Case Studies in Marketing : The Indian Context, Prentice

Hall, New Delhi

Stanton, William J. and Charles Futrell : Fundamentals af Marketing : Mc

Graw Hill Publishing Co., New York

Still, Richard R. Edward W. Cundiff and Norman, A.P. Govani : Sales;

Management; Decisions, Strategies and Cases, Prentice Hall, New Delhi

1.7 : FINANCIAL MANAGEMENT

Objective :

The objective of this course is to help students to understand

the conceptual framework of financial management and its applications

under various environmental constraints.

Course Inputs :

1. Financial Management : Meaning, nature and scope of finance,

Financial goal-profit vs. wealth maximization, Finance Conditions-

Investment Financial and dividend decisions

2. Capital Budgeting : Nature of investment decisions, Investment

evaluation criteria-net Present value, internal rate of return,

Profitability index, payback period, accounting rate of return, NPV

and IRR comparison, Capital rationing. Risk analysis in capital

budgeting

3. Cost of Capital : Meaning and significance of cost of capital :

Calculation of cost of debt, preference capital, equity capital and

retained earnings, combined cost of capital (weighted) Cost of

Equity and CAPM

4. Operating and Financial Leverage : Measurement of Leverages,

Effects of operating and financial leverage on profit, Analysing

alternative financial plans, combined financial and operating leverage

5. Capital Structure Theories : Traditional and M.M. hypothesis without

taxes and with taxes, Determining capital structure in practice

6. Dividend policies : Issues in dividend decisions, Walter's model,

Gordon's model, M.M. hypothesis, dividend and uncertainty,

relevance of dividend, Dividend policy in practice, Forms of dividend

behaviour

7. Management of Working Capital : Meaning, significance and types of

working capital, Calculating operating cycle period and estimation of

working capital requirements, Financing of estimation of working

capital and norms of bank finance, Sources of working capital.

Factoring services, various committee reports on bank finance,

dimensions of working capital management

8. Management of cash, receivables and inventory

REFERENCES

Bhattacharya, Hrishikas : Working Capital Management : Strategies and

Techniques, Prentice Hall, New Delhi

Beealey, Richand A. and Steward C. Myers : Corporate Finance,

McGraw Hill, Int. Ed., New York

Chandra, Prasanna : Financial Management, Tata McGraw Hill, Delhi

Hampton, John : Financial Decision Making, Prentice Hall, Delhi

Pandey, I.M. : Financial Management, Vikas Publishing House, Delhi

Van Home, J.C. and J.M. Wachowicz Jr. : Fundamentals of Financial

Management, Prentice Hall, Delhi

Van Home, James C.: Financial Management and Policy, Prentice Hall,

Delhi

Prinches, George, E. : Essentials of Financial Management, Harper and

Row, New York

Khan, M.Y. & Jain, P.K. : Financial Managemant, Tata McGraw Hill,

New Delhi

Archer, Stephen, H. Choate G. Marc. Racette, Georage: Financial

Managemant, John Wiley, New York

Block Stanley, B. Geoffery A. Hilt : Foundations of financial

Management, Richard D. Irwin, Homewood, Illinois

MFC. 17 MFC. 18

SEMESTER II

2.1 : ACCOUNTING FOR MANAGERIAL DECISIONS

Objective :

The objective of this course is to acquaint students with the

accounting concepts, tools and techniques for managerial decisions.

Course Inputs :

1. Introduction to Accounting : Management accounting as a area of

accounting; objectives, nature and scope of financial accounting,

cost accounting and management accounting; Management

accounting and managerial decisions; Management account's

position, role and responsibilities

2. Accounting Plan and Responsibility centres : Meaning and

significance of responsibility accounting : Responasibility centres,

cost centre, profit centre and investment centre; Problems

in transfer pricing; objective and determinants of

responsibility centres

3. Budgeting: Definition of budget; Essentials of budgeting; Types of

budgets-functional, master, etc., fixed and flexible

budget. Budgetary control : Zero-base budgeting; Performance

budgeting

4. Standard Costing and Variance Analysis : Standard costing as a control

technique; Setting of standards and their revision; Variance analysis-

meaning and importance, kinds of variances and their uses-material,

labour and overhead variance. Disposal of variances; Relevance of

variance analysis to budgeting and standard costing

5. Marginal costing and Break-even Analysis : Concept of Marginal

cost; Marginal costing and absorption costing, Marginal costing

versus direct costing; Cost-volume- profit analysis; Break-even

analysis; Assumptions and practical applications of break-even

analysis; Decisions regarding sales-mix, make or buy decisions and

discontinuation of a product line etc.

6. Analysis Financial statements; Horizontal, vertical and ratio

analysis; Cash flow analysis

7. Contemporary issues in Management Accounting : Value chain

analysis; Activity-based costing, Quality costing.

8. Reporting to Management : Objectives of reporting, reporting

needs at different managerial levels; Types of reports, Modes

of reporting, reporting different levels of Management

REFERENCES

Anthony, Robert : Management Accounting, Tarapore Wala, Mumbai

Barfield, Jessle, Ceily, A. Raibom and Michael R. Kennery: Cost

Accounting : Traditions and Innovations, South Western College

Publishing, Cincinnati, Ohio

Decoster, Don T. and Elden, L. Schafer : Management Accounting : A

Decision Emphasis, John Wiley and Sons Inc., New York

Garrison Ray H. and Eric W. Noreen : Management Accounting, Richard

D. Irwin, Chicago

Hansen Don R. and Maryanne M. Moreen : Management Accounting,

South Western College Publishing, Cincinnati, Ohio

Homgran, C.T. Grayl, Sundem and William O. Stratton: Introduction to

Management Accounting, Prentice Hall, Delhi

Lall, B.M. and I.C. Jain : Cost Accounting : Principle and Pract.,

Prentice Hall

Pandey, I.M. : Management Accounting, Vani Publications, Delhi

Welsch Glenn A., Ronald W. Hilton and Paul N. Gordon :

Budgeting

Profit Planning and Control, Hall, Delhi

2.2 : COMPUTER APPLICATIONS IN BUSINESS

Objective :

The objective of this course is to provide and understanding of computers,

computer operating system and application of relevant softwares

in managerial decision making

Course Inputs :

1. Computer Hardware : Computer system as information processing

system; differences-types of computer system, hardware option CPU,

input devices, output devices, storage devices, communication devices,

configuration of hardware device and their applications

2. Personal Computers : PC and its main components, hardware

configuration CPU and clock speed, RAM and secondary storage

devices, other peripherals used with PC; Factor influencing PC

performance; PC as a virtual office

3. Modern information Technology : Basic idea of Local Area

Networks (LAN) and Wide Area Network (WAN) E-mail : Internet

technologies, access, devices concept of World Wide Web

and Internal browing Multimedia

4. Introduction to Operating Systems : Software needs, operating

systems, application softwares, programming languages,

DOS; WINDOWS-window explorer, print manager, control

panel,

MFC. 19 MFC. 20

paintbrush, calculator, desk top, my computer, setting find run;

UNIX

Objective :

2.3 : BUSINESS ENVIRONMENT

5. Word Processing : Introduction and Working with MS Word and

MS-Office, Word basic commands : Formatting text

and d o c u m e n t s : S o r t i n g a n d t a b l e s , W o r k i n g w i t h g r a p h

i c s ; Introduction to mail merge

6. Spread Sheets : Working with EXCEL-formatting functions, chart

features; Working with graphics in Excel; Using worksheets as

database in accounting, marketing, finance and personnel areas

7. Presentation with Power-point : Power point basics, creating

presentations the easy way; Working with graphics in Power-Point

Show time, sound effects and animation effects

8. Introduction to Lotus Smart Suite for Data Sheet Analysis :

Structure of spreadsheet and its applications to accounting, finance

and marketing and its applications to accounting, finance

and marketing functions of business; Creating a

dynamic/sensitive worksheet, concept of absolute and relative

cell reference, Using various bult-in functions mathematical,

statistical, logical and finance functions, Goal seeking and

back solver tools, using graphics and formatting of worksheet,

sharing data with other desktop applications, strategies of creating

error-free worksheet

9. Introduction to Accounting Packages : Preparation of vouchers,

invoice and salary statements; Maintenance of inventory records;

Maintenance of accounting books and final accounts. Financial

reports generation. Practical knowledge on Wings Accounting and

Wings Trade (Softwares) Tally etc.

10. Introduction to Statistical Packages : Usage of statistical packages

for analysis in research-Lotus and Excel, SISS, SYSTAT

REFERENCES

Date, C.J. : An Introduction to Database Systems, Addison Wesley,

Massachuset

Dienes, Sheila S. : Microsoft Office, Professional Windows 95, Instant

Reference; BPB Publication, Delhi

Mansfield, Ron : The Compact Guide to Microsoft Office, BPB Pub., Delhi

Norton, Peter : Working with IBM-PC, BPC Publication, Delhi

O' Brian, J. A. : Management Information Systems, Tata McGraw Hillo.

N. Delhi

Ullman, J.O. : Principles of Database Systems, Galgotia Publications, N. Delhi

This course develops ability to understand and scan business environment

in order to analyse opportunities and take decisions under uncertainty.

Course Inputs :

1. Theoretical Framework of Business Environment : Concept,

Significance and nature of business environment; Elements of

environment-internal and external; changing dimensions of

business environment; Techniques of environmental scanning and

monitoring

2. Economic Environment of Business : Significance and elements of

e c o n o m i c s e n v i r o n m e n t ; E c o n o m i c s s y s t e m a n d b u s i n e s s

environment; Economics planning in India; Government policies-

Industrial policy, fiscal policy, fiscal policy, Monetary Policy,

EXIM policy; Public sector and economics

development; Development banks and relevance to Indian

business; Economics reforms, liberalisation and structural

adjustment programmes

3. Political and Legal Environment of Business : Critical elements of

politics environment; Government and business; Changing

dimensions of legal environment in India; MTP Act, FEMA and

licensing policy; Consumer Protection Act

4. Socio-Cultural Environment : Critical elements of socio-cultural

environment; Social institutions and systems; social values and

attitudes; Social groups; Middle class; Dualism in India Society

and problems of uneven income distribution; Emerging rural sector

in India; Indian business system; Social rural sector in India; Indian

business system; Social responsibility of business; Consumerism in

India

5. International and Technological Environment : Multinational

corporations : foreign collaborations and Indian business; Non-

resident Indians and corporate sector; International economics

institutions-WTO, World Bank IMF and their importance to India;

foreign trade policies; Impact of Rupee devaluation; Technological

environment in India; Policy on research and development : Patent

Law, Technology transfer

REFERENCES

Adhikary, M. : Economic Environment of Business, Sultan Chand &

Sons, New Delhi

Alhuwalia I.J. : Industrial Growth in India, Oxford University Press,

Delhi

MFC. 21 MFC. 22

Alagh, Yoginder K. : Indian Development Planning and Policy, Vikas

Publication, New Delhi

Aswasthappa K. : Legal Environment of Business, Himalaya Publication,

Delhi

Chakravarty, S. : Development Planning, Oxford University Press, Delhi

Ghosh, Biswanath : Economic Environment of Business, Vikas

Publications, New Delhi

Government of India : Economic Survery, Various issues

Raj Agarwal and Parag Diwan : Business Environment, Excel Books,

New Delhi

Ramaswamy, V.S. and Mama Kumari : Strategic Planning for Corporate

Success, McMillan, New Delhi

Sengupta, N.K. : Government and Business in India, Vikas Publication,

New Delhi

S.R. Swamy, B.P. Gupta & B.L. Vaishnav : Economics and Business

Environment, Ramesh Book Depot, Jaipur

2.4 : CORPORATE LEGAL FRAMEWORK

6. Restrictive and unfair Trade Practices, Consumer Protection Act,

MRTP Act, 1969-monopolistic trade practices, Restrictive trade

practices; Unfair trade practices; The Consumer Protection Act,

1986-Salient features; Definition of consumer, rights of consumer,

Grievance redressal machinery

7. SEGJ Act, 1992

8. WTO : Regulatory framework of WTO : Basic principles and

charter of WTO : Provisions relating to Preferential treatment

developing countries, Regional groupings; Technical standards;

Antidumping duties and other NTBS; Custom valuation; Dispute

settlement, TRIPs and TRIMs

REFERENCES

Avdhan, V.A. : SEBI Guidelines and Listing of Companies, Himalaya

Pub., New Delhi, Indian Contract Act, 1872

SEBI Act 1992 : Nabhi Publication, Delhi

Securities (Contract and Regulation) Act, 1956

Taxman's Company Act (Latest)

Taxman's Masters Guide to Companies Act, 1998

Taxman's Mercantile Law (Latest) Objective :

The objective of this course is to familiarize students with the relevant

provisions of various laws influencing business

Course Inputs :

1. Indian Contracts Act, 1872 : Definitions, essentials of a valid

contract, offer, acceptance, free consent consideration, legality of

object, capacity to contract, discharge of contract, consequences of

breach of contract

2. Sale of Goods Act : Definitions, conditions and warranties;

Transfer of property, rights of unpaid seller

3. Negotiable Instruments Act, 1881 : Definitions, types of negotiable

instrument; Negotiation; Holder and holder in due course payment

in due course; Endorsement and crossing of cheque; Presentation of

negotiable instruments

4. The Companies Act, 1956 : Definition and types of companies,

Memorandum of association, Articles of association, Prospectus;

Share capital and membership; Meetings and resolutions; Company

managements; Winding up and dissolution of companies

5. FEMA, 2000

The Companies Act, 1956

The Negotiable Instrument Act, 1881

Singh, Avtar : Law Relating to Monopolies, Restrictive and Unfair Trade

Practices, Eastern Book Co.

Bhandari, M.L. : Guide to Company Law Procedure, Vols. I, II and III,

Jain Book Agency, New Delhi

Ramaiya, A. : Guide to Companies Act, Wadhwa Publishing, Nagpur

2.5 : INVESTMENT MANAGEMENT

Objective :

This course exposes the students to the various concepts of investment

management and provides an in-depth study of various issues thereunder.

Course Inputs :

1. Investment : Nature and scope of investment analysis : Elements of

investment-return, risk and time elements; objectives

of investment; Security return and risk analysis, Measurement

of return and risk; approaches to investment analysis

MFC. 23 MFC. 24

2. Types of Investments : Financial investments-securities and

dervatives, deposits, tax sheltered investment;

Nonfinancial i n v e s t m e n t - r e a l e s t a t e , g o l d a n d o t h e r t y p e

s a n d t h e i r

Objective :

2.6 SECURITY MARKET OPERATIONS

characteristics; Sources of financial information

3. Fundamental Analysis : Economic analysis, industry analysis and

company analysis

4. Technical Analysis : Various prices and volume indicators indices and

moving average: Interpretation of various types of trends indices

5. Efficient Market Hypothesis: Weak, semi-strong and strong,

Testing of different forms of market efficiency and their

significance

6. Valuation of Fixed Income Securities : Bonds Debentures,

Preference shares and convertible securities

7. Valuation of Variable income securities : Equity shares

8. Investment by Individuals : Investment Policies of individuals; Tax

saving schemes in India

9. Equity Research and Analysis

REFERENCES

Agarwala, K. N. and Deeksha Agrawala : Bulls, Bears and The Mouse,

Macmillan, New Delhi

Cheney, J. and E. Muses : Fundamentals of Investments, Paul, New York

Clark, James Fransis : Investment Analysis and Management, McGraw

Hill, International Edition

Dalton, John M. : How the stock market Works, Prentice Hall, Delhi

Domodran : Investment Valution, John Wiley, New York

Fabozzi, Frank J. : Investment Management, Prentice Hall, International

Ed.

Fischer, Donald, E. and Ronald, J. Jordan : Security Analysis and Port-

folio Management, Prentice Hall, Delhi

French, Don : Securitiy and Portfolio Analysis, Merril Pub. Co.

Kevin, S. : Portfolio Management, Pretice Hall, New Delhi

Machi, Raju, H.R. : Working of Stock Exchange in India, Wiley Eastern

Ltd., New Delhi

Merbert, B. Mayo : Investment, Dryden Press

Shrpe, William F. Gordon J. Alexander and Jeffery J. Balley :

Investments, Prentice Hall, Delhi

Smith Richard D : Profit Investment, West Publishing Company

This course aims at equipping students with the practical knowledge about

the functioning of primary markets and stock exchanges.

Course Inputs :

1. Security Markets-Legal Environment : SEBI Act, 1992, Securities

Contract Regulation Act, 1956, Companies Act, 1956 (various

provisions relating to securities ), RBI rules and guidelines for Fll's

2. Security Markets : Primary and Secondary market; Primary Market-

its role and functions; Methods of selling securities in primary

market, New financial instruments

3. New Issues : SEBI guidelines for public issues-pricing of issue,

promoter's contribution, appointment and role of merchant

bankers, underwriters, brokers, registrars and managers bankers

etc. Underwriting of issues; Allotment of shares; Procedures for

new issues; e-trading

4. Secondary Market : Role, importance, organization of stock

exchange. Listing of securities in stock exchange; Trading

mechanism-screen based trading; insider trading Take-overs;

Internet Based trading

5. Depository : Role and need; The Depositories Act, 1996; SEBI

(Depositories and Participants Regulation ) 1996; SEBI (Custodian

of Securities) Regulation 1996; National Securities Depository Ltd.

(NSDL), Depository participant

6. NSC and OTCEI : National Stock Exchange and Over the Counter

Exchange-role, organization and management; Listion

rules, Procedure including formats, formalities; Accounting

records for buying/selling transactions; Nature of

transactions-cash and forward; Settlement of trades

7. Derivative Trading : Future and options-concept, meaning and

importance; methods of trading, Valuation of options

8. Funds form International market : Fll's Euro issues ADR's GDR's

and FDI, Guidelines for raising funds from the international

markets through various instruments

9. Credit Rating; Meaning and necessity; Credit rating agencies;

Methodology of Credit rating

10. Share Price Indices : Need and importance; Compiling of index

numbers and interpretations

MFC. 25 MFC. 26

REFERENCE

Delton, John, M. : How the stock Market Works, Prentice Hall, New

Delhi

Gupta, L.C. : Stock Exchange Trading in India, Society for Capital

Market Research and Development, Delhi

Machi Raju, H.R. : Working of Stock Exchange in India, Willey Eastern

Ltd, New Delhi

Website of obeindia com nsc-India com.

Chandratre, K.R. et al. : Capital Issues, SEBI & Lising,

Bharat

Publishing House, New Delhi

Donald E. Fisher, Ronald, J. Jordan : Secruity Analysis and

Portfolio

Management, Prentice Hall, New Delhi

Raghunathan, V. : Stock Exchange and Investment, Tata McGraw Hill,

New Delhi

2.7 : FUNDS MANAGEMENT IN COMMERCIAL BANKS AND

INSURANCE SECTOR

Objective :

The course aims at developing necessary skills for applying the principles

of financial analysis to management of funds by commercial banks and the

insurance sector.

Course Inputs :

1. Liquidity Management in commercial fund: Theories of Liquidity

Management: Priorities in the employment of bank funds, Problems

in resource allocation in India

2. Management of Capital Funds in Commercial Banks: Meaning and

Functions of capital funds; Necessity of adequate capital funds,

Standard to measure capital adequacy, Present position in India

with respect to capital adequacy

3. Management of Primary reserves; Nature and Purpose of primary

reserves. Legal reserves-nature and function; Working reserve-

nature and function; Cash management in commercial banks

4. Management of Secondary Reserves : Nature and Function of

Secondary reserves; Factors influencing secondary reserves,

Estimation and management of secondary reserve

5. Management of Bank Deposits : Relevance of marketing approach

to deposit mobilization in banks; Concepts of bank marketing ;

F o r m u l a t i o n m a r k e t i n g s t r a t e g i e s f o r c o m m e r c i a l b a n k s -

opportunity analysis, target market, competitive positioning,

Implementing marketing strategy

6. Management of Banks Loans : Characteristics of commercial loans,

Loans policy in commercial bank, Evaluating loan application-

credit information, credit analysis, credit decision, Priority sector

lending policies of commercial banks in India

7. Management of Banks Investments: Nature and Principles of

security investment of commercial banks; Formulating investment

policy; Volume and pattern of investment of commercial banks

in India

8. Performance Evaluation and Monitoring in Banks : Performances

of banks-branch expansion, deposit mobilisation and

credit development, Profitability performance Structure and

pattern of income and expenditure in commercial banks in India

9. Principles and Practice of General Insurance : Meaning, functions

and scope of life, fire engineering, accident, marine and aviation

insurance, Insurance Act, 1938

10. Risk Management Through Insurance : Role of Insurance, Benefits

and Limitation; Risk management policies-fire insurance,

Engineering insurance-machinery breakdown insurance, Public

utility insurance, compulsory public liability Insurance, Product

liability professional indemnities, employer's liability insurance,

Special features-types of cover marine insurance, aviation

insurance including inland/railroad transit insurance

REFERENCE

Bakerwelford, A.W. and W.W. Otter Barry: Law Relating To Fire

Insurance, Butterworth & Co. Ltd. London Dinsdale,

W.A. : Elements of Insurance, Pitman Government of

India, Insurance Act, 1937 As Amended

Jadav, Narendra : Challenges To Indian Banking Ed., Macmillan, New

Delhi

Kotch, Timothy W. : Bank Management, Dryden Press, Chiago

Sharma, R.S. : Insurance Principles and Practice, Vora, Delhi

Sinkey, Joseph F.Jr.L.: Commercial Banks Financial Management,

Prentice Hall, Delhi

Smith, T. R. : Fire Insurance Theory and Practice, Stone & Cox

Tannan M. L. : Banking Law and Practice, Indian Law House, Delhi

Tumer, H. S. : Principles of Marine Insurance, Stone and Cox

MFC. 27 MFC. 28

Khan M.Y.: Indian Financial SystemTheory and Practice, Vikas

Publishing House, New Delhi

Mishkin Fraderice S.: Economics of Money Banking and Financial

Markets, Harper Collins, New York

M. F. C. Final Examination

SEMESTER III

3.1 : OPERATIONS RESEARCH

Lucey. T. : Quantitative Techniques and Operations Research, Kalyani

Publication, Ludhiana

Taha, Hamdy A. : Operations Research : An Introduction, Prentice Hall,

Delhi

Vazsonyi Andrew and Herbert F. Spriner : Quantitative Analysis for

Business, Prentice Hall, New Delhi

Vora, N.D. : Quantitative Techniques in Management, Tata McGraw

Hill, New Dehli

Wagner, H.M. : Principles of Operations Research, Prentice Hall, Delhi Objective :

This course aims at developing an understanding of the applications

of operation research techniques to business and industry.

Course Inputs :

1. Operations Research : Concept and significance of operations

research; Evolution of operations research; Steps in designing

operations research studies; Operations research models

2. Linear Programming and its Applications : Graphic method and

simplex; Duality problem; Transportation problem; Assignment

problem

3. Introduction to Other Types of Programming : Goal programming

Interger Programming; Dynamic programming; Non-linear

Programming introductory only)

4. Waiting Line Models: Waiters and services; Mathematical distribution

of queues; Basic models of queuing theory and application

5. Inventory control : Deterministic models and probabilitic models

6. Game Theory : Zero sum game; pure and mix strategies; Criteria of

sharing Strategies

7. Simulation : Application of simulation techniques : Monto-Cario

approach

8. Net work Analysis : Introduction to PERT and CPM; Application

area of PERT and CPM

REFERNCES

Sharma, J.K. : Opreations Research Theory and Applications, Macmillan

India Ltd., New Delhi

Agarwal, J. D. and Sagarika Ghosh : Quantitative Techniques for

Financial Analysis, Indian Institute of Finance, New Delhi

Billy, E. Gillett : Introduction to Operations Research A computer Oriented

Algorihmic Approach, Tata McGraw Hill Publishing House, New Delhi

Watsman, Terry, J. and Parramor Keith : Quantitative Methods in

Finance, International Thompson Business Press

Sharma, S.C., Sehency, G.V., Srivastva, V.K. : Quantitative Techniques

for managerial Decision Making, Wiley Western Ltd., New Delhi

3.2 : FINANCIAL SERVICES MARKETING

Objective :

This course acquaints students with the concept and tools and

techniques of marketing financial services.

Course Inputs :

1. Financial Services : Role, concept, nature and characteristics;

Financial services marketing versus goods marketing triangle;

Strategic services marketing planning-A overview

2. Marketing Environment : Analysing financial services, marketing

environment macro and components; Understanding financial Service

Customer, Service quality-GAP model and quality dimensions

3. Marketing Segmentations and Positioning : Segmenting financial

service markets-need and basers; Market selection, positioning to

financial service-need, process and bases

4. Marketing Mix Strategy Development and Project Planning :

Need for expended marketing mix : Concept of financial

product; Product labels, Major Product decisions, branding and

product mix decisions, customer service strategy, Product life

cycle and new product development; Innovation, diffusion and

adoption

5. Pricing, Promotion and distribution Decisions : Price determination

factors, process and strategies, Promotion of financial products

communication process, promotion mix planning advertising,

personal selling public relations and sales promotion : Distribution

Strategies and channel alternatives

MFC. 29 MFC. 30

6. Planning for Other Ps. : Process planning rule of blue printing :

Matching of demand and supply; People employees and customers,

their role and management; managing physical evidence

Objective :

3.3 : INTERNATIONAL FINANCE

7. Customer Relationship Management

8. Service Marketing Applications : Marketing, retention strategies of

some special fund and non-fund based financial service, insurance

and factoring; Mutual funds and credit cards

REFERENCE

Auerbach, Robert D. Money : Banking and Financial, Macmillan

Publishing Co., New York and Macmillan Publisher, London

Avdhani, V.A. : Investment and Securities Market in India, Himalaya

Publishing House, Bombay

Gosney, John W. and Thomas P. Boehm : Customer Relationship

Essentials, Prentice Hall, New Delhi

Khan M.Y. : Indian Financial System Theory and Practice, Vikas

Publishing House, New Delhi

Mishkin, Frederics, S. : The Economics of Money Banking and Financial

Markets, Harper Collins Publisher, New York

Payne, Adrin : The Essence of Services Marketing, Prentice Hall, New

Delhi

Radebaugh and Pittsburg : Marketing of Banding Service, Prentice Hall,

New Jersey

Shankar, Ravi : Service Marketing : The Indian Experience, South Asia

Publications, New Delhi

Zeithamal, V.A. and M.J. Bitner : Service Marketing, Mcgraw Hill,

Boston

Shiva Ramu S. : Global Financial Service Industry, South Asia

Publications, New Delhi

Verma, J.C. : Lease Financial (Concept, Law and Procedure), Bharat

Law House, New Delhi

This course helps students understand the conceptual framework of

international finance and use thereof in marketing financial decisions

Course Inputs :

1. International Monetary and Financial System : Importance of

international finance; Brettonwood's conference and afterwards,

IMF and the World Bank; European monetary system, meaning and

Scope

2. Balance of Payment and International Linkages : Balance of

payment and its components; International flow of goods,

services and capital, coping with current account deficit

3. International Financial Markets and Instruments : International

capital and money market; money and capital; market instrument;

Salient features of different international markets, Arbitrage

o p p o r t u n i t i e s , I n t e g r a t i o n o f m a r k e t s ; R o l e o f f i n a n c i a l

intermediaries

4. Foreign Exchange Markets : Determining Exchange rate; Fixed and

Flexible exchange rate system; Exchange rate theories; Participants

in the foreign exchange markets; Foreign exchange market cash and

spot markets. Exchange rate quotes; LERMS : Factors affecting

exchange rates, spot rate, forward exchange rates,

forward exchange contracts; Foreign exchange and currency

futures; exchange rates arrangement in India; Exchange

dealings and currency possession; Information and

Communication; Foreign exchange trades

5. Foreign Exchange Risk : Transaction exposure,

translation exposure and economic exposure : Management

of exposure internal techniques netting, marketing, leading and

lagging pricing policy, asset and liability management and

technique

6. Management Risk in Foreign Exchange Markets : Forex derivatives

swaps, Future and option and forward contracts

7. International capital and Money Market Instruments : GDRs,

ADRs, IDRs Duro blnds, Euro loans Repos, Cps, floating

rate instruments, loan syndication and Euro deposits

8. Current Development : International indebtedness, Capital account

convertibility pros and cons; innovations in international financial

instrument

MFC. 31 MFC. 32

REFERENCE

Apte, P.G. : International Financial Management, Tata Mcgraw Hill,

New Delhi

Buckley, Adrain : Multinational Finance, Prentice Hall, New Delhi

Eitman, D.K. and A.I. Stenehill : Multinational Business Cash Finance,

Addison, Wesly, New York

Henning, C.N.W. Piggot and W.H. Scoti : International Financial

Management, Mcgraw Hill, International Edition

Levi, Naurice D. : International Finance, Mcgraw Hill, International Ed.

Rodriquefe, R. M. and E. E. Carter : International Finance Management,

Prentice Hall, International Edition

Shaprio, Alan, C. : Multinational Financial Management, Prentice Hall,

New Delhi

Yadav, Surendra S, P.K. Jain and Max Peyrard : Foreign Exchange

Markets. Macmillan, New Delhi

Zeneff, D. and J. Zwick : International Financial Management, Prentice

Hall, International Edition

O'Connor D.J. Bueso A.T. : International Dimensions of Financial

Management, Mcgraw, New Delhi

Pilbeam Keith : International Finance, Macmillan Press, Hong Kong

3.4 : PORTFOLIO MANAGEMENT

Objective :

The objective of this course is to enable students learn various methods of

building portfolios, evaluation and revision under various

economic environmental constraints.

Course Inputs :

1. Portfolio Management : Meaning, importance, objectives and

various issues in portfolio construction, revision of portfolio and

evaluation

2. Portfolio Analysis : Estimating rate of return and standard

deviation of portfolio returns; Effects of combining securities

Markowiz risk-return optimization

3. Single Index Model : Portfolio total risk, Portfolio market risk and

unique risk, Sharpe's optimization solution

4. Capital Market Theory : Capital Market line, security market line.

Risk free lending and borrowing. Recent development

5. Factor Models : Arbitrage pricing theory; Principle of arbitrage,

arbitrage portfolios; Two factor and multi factor models

6. Portfolio Construction : Techniques of portfolio construction

7. Portfolio performance Evaluation : Measure of Return, risk

adjusted measures of performance evaluation, market timing,

evaluation criteria and procedures

8. Market Effciency : Concept, importance and status of Indian

Capital market

REFERENCE

Barua, Raghunathan and Verma : Portfolio Management, Tata Mcgraw Hill

Clark, James Francis : Investment Analysis and Management, Mcgraw

Hill, International Edition, New York

Fabozzi, Frand J. : Investment Management, Prentice Hall, International

Edition, New York

Fischer, D.E. and Jordon, R.J. : Security Analysis and Portfolio

Management, Prentice Hall, Delhi

Sharpe, Million F. Gordon, J., Alexander and J.V. Bailly : Investment,

Prentice Hall, Delhi

Strong, Robert : Portfolio Construction : Management and Protection,

West Publishing Co.

Sharpe William : Portfolio Theory and Capital Markets, Mcgraw Hill,

New York

Elton Edwin J. and Gumber Martin J. : Modern Portfolio Theory and

Investment Analysis, Johnawiley, New York

3.5 : E-COMMERCE

Objective :

The objective of this course is to enable student gain knowledge about a e-

commerce and its various components.

Course Inputs :

1. Introduction to E-Commerce : Meaning and concept; Electronic

commerce versus traditional commerce; media convergence; E-

commerce and e-business; Channels of e-commerce, Business

application of E-commerce; Need for e-commerce, e-commerce as

an electronic trading System special features

2. Internet Concepts and Technologies : Concept and evolution of

Internet; Web Technologies; Global publishing concept, universal

MFC. 33 MFC. 34

reader concept and client server concept, Hypertext publishing and

hypertext information network, Benefits of hypertext, URL's,

HTTI, HTTID Servers, HTML Forms and CGI gateway services

3. Business Models of E-Commerce and Infrastructure : E-commerce

m o d e l s ; S u p p l y c h a i n m a n a g e m e n t , p r o d u c t a n d s e r v i c e

digitization, remote servicing procurement; Online marketing and

advertising; E-commerce resource and infrastructure resources and

planning for infrastructure

4. Business to Consumer E-Commerce : Cataloguing order planning

and order generation, cost estimation and pricing order receipt and

accounting, order-selection and prioritization, order

scheduling, order fulfilling and delivery, order billing

and payment management, post sales services

5. Web-site Design : Role of web-site in B2C e-commerce, Web-site

strategies and web-site design principles, Push and pull

technologies, alternative methods of customer communication

6. Electronic Payment System : Special features required in payment

system for e-commerce, Types of e-payment systems; E-cash and

currendy servers, e-chues, credit cards, smart cards, electronic

purses and debit cards : Business issues and

economics implications: Operational credit and legal risk of

e-payment systems; Risk management option in e-payment

systems, Components of an effective electronic payment system

7. Business to Business E-commerce : Need and alternative models of

B2B E-commerce; Technologies, EDI and paperless trading; EDI

architecture, EDI standards, VANS, Costs of EDI infrastructure,

features of EDI service arrangement, Internet-based EDI and FTP-

based messaging

8. E-Business : Workflow management, mass customization and

product differentiation; Organisation restructuring; Integrated

logistics and distribution; Knowledge management issue and role of

e-commerce infrastructure

9. Internet Protocols : Layers and networking : OSI layering and TCP

layering, TCT, UDP, IP, DNS, SLIP, AND MP. Emerging

scenario in ISP

10. Security Issues in E-commerce : Security risk of e-commerce,

exposure of resources; types of threats sources of threats, security

tools and risk-management approach, e-commerce security and a

rational security policy for e-commerce; corporate digital Library

I.T. Act, 2000

11. Regulatory and Legal Framework of E-Commerce; Cyber laws

aims and salient provision; Cyber Laws in India and their

limitation; Taxation issues in e-commerce

12. Multi-media and E-Commerce : Concept and role of multi-media;

multi-media technologies: Digital video and digistation of product

and customer communication; Desk top video conferencing and

marketing, Broadband networks and related concepts; ISDN, ATM,

Cell relay

REFERENCE:

Agarwala, K.N. and Deeksha Agarwala : Business on the net : What's and

How's of e-commerce, Macmillan, New Delhi

Agarwala, K.N. and Deeksha Agarwala : Business on the Net : Bridge to

the Online Storefront; Macmillan, New Delhi

Cady, Gloc Harrab and Mcgregor Pat : Mastering the Internet, BDB

Publication, New Delhi

Diwan, Prag and Sunil Shrama : Electronic Commerce-A Manager's

Guide To E-Business, Vanity Books International, Delhi

Janal, D.S. : On Line Marketing Hand Book, Van Nostrand Reinhold,

New York

Kosivr, David : Understanding Electronic Commerce, Microsoft Press,

Washington

Minoli and Minol : Web Commerce Technology Handbook, Tata Mcgraw

Hill, New Delhi

Schnieider, Gray P. : Electronic Commerce, Course Technology, Delhi

Young, Margaret Levine : The Complete Reference To Internet, Tata

Mcgraw Hill, New Delhi

O'Brien J. : Management Information Systems, Tata Mcgraw Hill, New

Delhi

3.6 : CORPORATE TAX PLANING AND MANAGEMENT

Objective :

This course aims at making students conversant with the concept of

corporate tax planning and Indian tax Laws, as also their implications for

corporate management.

Course Input :

1. Introduction to Tax Management : Concept of tax planning :

Tax avoidance and tax evasions, Corporate taxation and dividend

tax

MFC. 35 MFC. 36

2. Tax planning for new business : Tax planning with reference to

location, nature and form of organization of new business

3. Tax Planning and Financial Management Decision : Tax planning

r e l a t i n g t o c a p i t a l s t r u c t u r e d e c i s i o n , d i v i d e n d p o l i c y ,

Objective :

SEMESTER IV

4.1 : STRATEGIC MANAGEMENT

intercorporate dividends and bonous shares

4. Tax planning and Managerial Decision : Tax Planning in respect of

own lease, sale of assets used for scientific research, make or buy

decisions, Repair, replace renewal or renovation and shutdown or

continue decision

5. Special Tax Provision : Tax Provisions relating to free trade zones,

Infrastructure sector and backward areas; Tax incentives for

exporters

6. Tax Issue relating to Amalgamation : Tax Planning with reference

to amalgamation of companies

7. Tax Payment : Tax deductions and collection at source, Advance

payment of tax

REFERENCE

Ahuja, G.K. and Ravi Gupta : Systematic Approach to Incometax and

Central Sales Tax, Bharat Law House, New Delhi

Circulars Issued By C.B.D.T.

Income Tax Act, 1961

Income Tax Rules, 1962

Lakhotia, N. : Corporate Tax Planning, Vision Publications, Delhi

Singhania, V.K.: Direct Taxes Law and Practice, Taxmans Publications,

Delhi

Singhania, Vinod K. : Direct Tax Planning and Management, Taxman

Publication, Delhi

3.7 : TRAINING REPORT AND PRESENTATION

Each student shall undergo summer training for 1 month at the end

of second semester and shall be required to submit a Training Report

and present the same in the form of class seminar, soon after

Examination is over for evaluation carrying 50 marks. Such marks will

be added to third semester.

The objective of this course is to enhance the decision making abilities of

students in situations of uncertainty in a dynamic environment.

Course Input :

1. Concept of Strategy : Defining Strategy, level at which strategy

operates; Approaches to strategic decision making. Mission and

purpose, objective and goals, Strategic business unit

(SBU) Functional level strategies

2. Environmental Analysis and Diagnosis : Concept of environment

and its component; Environment scanning and appraisals;

Organizational appraisal; Strategic advantage analysis and

diagnosis; SWOT analysis

3. Strategy Formulation and Choice of Alternatives : Strategies-

Modernization, Diversification integration, merger take-over and

joint strategies ;Turn around, divestment and Liquidation

strategies, Process of strategic choice-industry competitor and

SOWT analysis; Factored affecting strategic choice, Generic

competitive strategies-cost leadership differentiation, focus, value

chain analysis, bench making service blue printing

4. Functional strategic : Marketing production/operations and r&d

plants and policies

5. Functional Strategies : Personnel and financial plans and policies

6. Strategy Implementation: Issue in strategy implementation

Resource allocation

7. Strategy and Structure : Structural considerations, structures for

strategies. Organisational design and change

8. Strategy Evaluation, Overview of Strategic evaluation, strategic

control; Techniques of strategic evaluation and control

9. Global Issues in strategic Management

REFERENCE

Bhattachary, S.K. and N. Venkataramin : Managing Business Enterprises,

Strategies, Structures and Systems, Vikas Publishing House, New Delhi

Budhiraja, S.B. and M.B. Athereya : Cases in Strategic Management,

Tata Mcgraw Hill, New Delhi

Christensen, C. Roland Kenneth R. Andrews, Joseph L. Bower Orchard

G. Hamermesh, Michael E. Porter : Business Policy : Text and Cases,

MFC. 37 MFC. 38

Richard D. Irwin Inc., Homewood, Illinois

Coutter, Mary K. : Strategic Management in Action, Prentice Hall, New

Jersey

David, Fred R. : Strategic Management, Prentice Hall, New Jersey

Gluck, Willian F. and Lawarence R. Jauch : Business Policy and Strategic

Management, Mcgraw Hill, International Edition

H. Lgor, Ansoft : Implanting Strategic Management, Prentice Hall, New

Jersey

Kazmi, Azher : Business Policy, Tata Mcgraw Hill, Delhi

Michal, E. Porter : The Competitive Advantage of National Macmillan,

New Delhi

Mintzberg, Henry and James P. Logan : Strategy Policy and Central

Management, South Western Publishing Co., Cincinnati, Ohio

Sharma, K.A. : Strategic Management in Indian Companies, Deep and

Deep Publication, New Delhi

4.2 : PROJECT PLANNING AND CONTROL

Objective :

The object of this course is to enable students learn the Process and issues

relating to preparation appraisal, review and monitoring projects.

Course Input :

1. Identification of Investment Opportunities : Project Ideas,

Screening of ideas; Environment scanning and

opportunity analysis, Government regulatory framework

2. Market and Demand Analysis : Information required for market and

demand analysis. Sources of Information, primary and secondary;

Demand forecasting

3. Technical Analysis : Materials and inputs; Production technology,

Product mix, plant location and layout, selection of plant and

equipment

4. Cost of Project and Means of Financing : Major cost components;

Means of financing; Planning capital structure, various financing

scheme of financing institutions

5. Profitability, Financial Projections and Tax Consideration : Cost of

production, Break even analysis; Project balance sheet, profit and

l o s s a c c o u n t a n d c a s h f l o w s s t a t e m e n t ; p r o v i s i o n s a n d

considerations for computing taxble income

6. Appraisal Criteria and Appraisal process : Methods of appraisal

under certainty and risk and uncertainty. Investment appraisal in

practice; Process followed by financial intuitions. Project appraisal

techniques

7. Social cost Benefit Analysis : Rationale for Social cost benefit

analysis. Methodology of SCB; L & M Approach and UNIDO

Approach, Measurement of the Impact on distribution; SCBA

in India

8. Network Techniques for Project Implementation, Monitoring and

control : PEAT and CPM techniques, Critical path, event slacks

and activity floals; Scheduling to match availability of manpower,

Measures of variability and probability of completion by a specified

data, Project implementation practices in India

REFERENCE

Bryce, M. C: Industrial Development, McGraw Hill (Int. Ed.), New York

Chandra Prasanna : Project Prearation appraisal and Implementation, Tata

McGraw Hill, Delhi

Idbi Manual of industrial project analysis in developing counries. (i)

Manual for Preparation of Industrial Feasibility Studies (ii) Guide to

Practical Project Appraisal

Pitale, R.I. : Project Appraisal Techniques, Oxford and IBH Planning

Commission : Manual for Preparation of Feasibility Report

Timothy, D.R. and W.R. Sewell : Project Appraisal and Review,

Macmillan, India

Chaudhary, S. : Project Management, Tata McGraw Hill, New Delhi

Little, I.M.D. and Mirries, J. A. : Project Appraisal and Planning for

Developing Countries, Heinemann Education Books, London

4.3 : STRATEGIC FINANCIAL MANAGEMENT

Objective :

The objective of this course is to acquaint student with the advanced

concepts of financial management and the application of the same in

developing financial strategies for the organization.

Course Inputs :

1. Financial Policy and strategic planning : Components of Financial

strategy; objectives and goals, Strategic planning process

2. Investment Decision under Risk and Uncertainty Techniques of

investment decision risk adjusted discount rate, certainty; equivalent

MFC. 39 MFC. 40

factor, statistical method, sensitivity analysis and simulation method;

Corporate strategy and high technology investment

3. E x p a n s i o n a n d F i n a n c i a l R e s t r u c t u r i n g : M e r g e r s a n d

amalgamations, Corporate restructuring reasons for merger, legal

procedure for merger, benefits and cost of merger, Determination

of swap ratios. Evaluation of merger proposal; Corporate and

distress restructuring

4. Leasing : Meaning importance, types, tax considerations and

accounting consideration, Evaluation of lease from the point of

view of lessor and lessee; lease versus by decision

5. Venture Capital : Concept and Development in India; Process and

methods of financing fiscal Incentives

6. Financing strategy : Hybrid securities namely convertible and non-

convertures, deep discount bonds, secured premium

notes, c o n v e r t i b l e p r e f e r e n c e s h a r e ; O p t i o n f i n a n c i n g w a

r r a n t s , convertible and exchangeables

7. Corporate Strategy, Financial Policy and Shareholder Value

Creation : Linkage between corporate Strategy and Financial;

Strategy Implications of capital budgeting, capital structure

and dividend policy on corporate, Strategy Shareholder Value-

creation, measurement and management

8. Managing Financial Risk with Derivatives : Hooging risk, Future

markets; Forward contracts; Option Contract; Interest rate swaps,

Currency contracts

REFERENCE

Allen, D. : An introduction to strategic financial management, CIMA,

Kogan

Chandra, Prasanna : Financial management, Tata McGraw Hill, Delhi

Copeland, T.T. Koller and J Murrin: Valuation : Measuring and

managing the Value of Compaines, Jonn Wiley, International Edition,

New York

Copel and T.E. And J.F. Weston : Financial Theory and Corporate

Policy, Addison. Wesley, New York

Hampton, Jone : Financial Decision Marking, PHI, New Delhi

Hull, J.C.: Options : Futures and Others; Derivative Securities, Prentice

Hall of India, Delhi

Mattoo, P.K. : Corporate Restructuring : An Indian Perspective;

Macmillan, New Delhi

Pandey, I. M. : Financial Management, Vikas Publications, Delhi

Smith, C. W., C. W. Smithson and D. S. Vilford : Managing Financial

Risk, Harper and Row, New York

Net Work, Stewrt, G. B. : The Guest For Value, Harper Collins, London

Sundarsanam, L. S. : The Essence of Mergers and Acquisitions, Prentice

Hall of India, Delhi

Van Home, James, C. : Financial Management and Policy, Prentice Hall,

New Delhi

Van Hore, J.C. and J.M. Wachozicz Jr. : Fundamentals of Financial Mgt.

Co.

Verma J.C. : Corporate Mergers, Amalgamation and Take Overs, Bharat

Publishing House, New Delhi

Western J. E., K.S. Chung and S. E. Hoag : Mergers, Restructuring and

Corporate Control, Prentice Hall, New Delhi

4.4 : MANAGEMENT INFORMATION SYSTEM

Objective :

The objective of the course is to develop an understanding of the structure

and role of management information system in business.

Course inputs :

1. Introduction : concept, evolution and meaning of MIS; goals of

MIS information system for competitive advantage; system

approach to problem solving : challenges in the development of

MIS, MIS functions in an organization.

2. Information and managerial effectiveness : information as a

corporate resource pervasiveness of information, types of

i n f o r m a t i o n , o p e r a t i o n a , t a c t i c a l a n d s t r a t e g i c l e v e l s o f

management and information needs of management; process of

generation of information; quality of information; information

system for finance, marketing, manufacturing research and

development and human resource areas.

3. Information systems: information systems and their role in business

systems, changing role of information systems, users

of information system; types of information systems-

transaction processing system, MIS decision supports systems,

executive support system; enterprise resource planning (ERP)

system, geographical information system, business expert

systematic., procurement options and outsourcing information

system services.

4. System development life cycle: sequential process of software

development; computer aided software engineering (CASE). Tools

MFC. 41 MFC. 42

and the modular approach to software development; information

system audit.

5. Development and management of data bases : relational databases ;

data base management systems (dems) and their components ;

concept of entity and relationships; data dictionary, SOL and other

related concepts in DBMS; normalization process.

6. Data communication and networking : uses of computer networks,

types of network, net work, topologies; net work media and

hardware data communication over telephone; internets and

collaborative processing.

7. Implementation, evaluation and maintenance of system; methods

steps in implementation of system : approaches and process of

evaluating MTS.

8. Security issues relating to information systems : threats to

information systems : vulnerability, risk and control measures.

REFERANCES

Awad, E. M.: System Analysis and Design, Galgotia Publication, New Delhi

Charles, S.Parker: Understanding Networking and The Internet, Dryeen

Press

Judith R. Gordon and Steven R. Gordon : Information Systems : A

Management Approach, Dryen Press, Illinois

Kumar Muneeshi : Business Information System, Vikas Publishing House,

New Delhi

Laudon, Kannath C. and Jane P. Laudon : Management Information

System Organisation and Technology, Prentice Hall, New Delhi

Licher, Paul : Managing System : A Strategic Approach, Dryden Press,

Illinois

Lucas Hennery C. : Information Technology for Management, Mcgraw

Hill International Edition

Murdick Robert G. Joel E. Ross and James R. Claggett : Information

System For Modern Management, Prentic Hall, New Delhi

Paul Licher : Managing Information System : A Strategic Approach,

Dryden Press, Int. Ed., Illinois

Rajaraman, V. : Analysis and Design of Information System, Prentice

Hall, New Delhi

Sadagopan, S. : Management Information System, Prentice Hall, New

Serm, James, A. : Analysis and Design of Information System, Mcgraw

Hills, Int. Ed., New York

Sintin, M.C. : Introduction Computer Information Systems for Business,

S. Chand Co., New Delhi

4.5 : MULTINATIONAL FINANCIAL MANAGEMENT

Objective :

This course offers an understanding of the conceptual framework within

which the key financial decisions of multinational firm are analysed.

Course Inputs :

1. Multinational Financial Management : Growth and importance of

International Finance : Types of Risk in International Finance :

Rewards in International Finance

2. Multinational Working Capital Management : Short term over aeas

financing sources : International management of cash, accounts

receivables and inventory management

3. Multinational Investment Decisions : Capital Budgeting for

multinational corporations

4. Financial Decision : Cost of Capital for foreign investment and

designing financing structure

5. International Financing : Equity Financing, bond, financing, bank

financing, Direct loans , Government and development leading

6. Political Risk : Measurement of Political risk, management of

political risk, political risk analysis in capital budgeting

7. Portfolio Investment : Benefits of International portfolio

investment, Spreading risk international capital asset

pricing, international diversification

8. International Tax Management : Corporate taxes, Value Added Tax

(VAT), Withholding Taxes, duties and tarrifs Branch verses

subsidiary taxes; tax havens

9. International Accounting and Reporting, Foreign currency

t r a n s l a t i o n , M u l t i n a t i o n a l t r a n s f e r r i n g a n d p e r f o r m a n c e

measurement, Consolidated financial reporting; International

accounting standards

REFERENCE

Apte, P. G. : International Financial Management, Tata Mcgraw Hill,

New Delhi

Buckley, Adrien : Multinational Finance, Prentice Hall, New Delhi

Eitman, D. K. and A. I. Stanehill : Multinational Business Cash Finance,

Addison, Wesley

MFC. 43 MFC. 44

Heneing, C.P.W.Paggot and W.H.Scott: International Financial

Management, Mcgraw Hill, Int. Ed., New York

Levi, Maurice D. : International Finance, Mcgraw Hill, International Ed.

Rodriquefe, R.M. and E.E. Carter : International Financial Management,

Prentice Hall, International Edition

Shapric, Plan C. : Multinational Financial Management, Prentice Hall,

New Delhi

Zeneff, D. and U. Rwidk : International Financial Management, Prentice

Hall, International Edition

4.6 : DERIVATIVES AND RISK MANAGEMENT

Objective :

This course introduction students to the application of various tools and

techniques of financial risk management

Course Input:

1. Introduction : Meaning and purpose of derivatives; Forward

contracts, futures contracts, options, swaps and other derivatives;

Types of traders; Trading future contracts; Specification of future

contracts; Operation of margins; Settlement and regulations

2. Sources of Financial Risk : Credit vs. Market default risk, foreign

exchange risk, interest rate risk, purchasing power risk etc.,

Systematic and non-systematic risk

3. Option : Types of option : option trading Margins Valuation of

options; Binomial Option Pricing Model; Black Schools model for

call options; Valuation of put options : Index options;

Option markets, exchange traded option, over the counter

option quotes trading margins, clearing, regulation and taxation;

Warrants and convertibles

4. Future : hedgers and speculators; Future contracts; Future markets;

clearing house, margins, trading, future positions and taxation;

Future prices and spot prices, Forward prices vs. future prices;

Future vs. option

5. Swaps : Mechanics of interest rate swaps, valuation of interest rate

swaps: Currency swaps and its valuation. Credit risk and Swaps

6. Managing Market Risk : Hedging Schemedelta, hedging theta

gamma; Relationship in delta, theta and gamma ; Vega and rho;

portfolio insurance

7. Derivatives Market in India : Present position in India regulation,

working and trading activity

REFERENCES

Chance, Don M. : An Introduction to Derivatives, Dryden Press, Int.

Edition.

Chew, Lilan : Managing Derivative Risk, John Wiley, New Jersey.

Das, Satyajit : Swap and Derivative Financing, Probus

Hull, J. Options : Futures and other Derivaties, Prentice Hall, New Delhi.

Kolb, Robert W. : Understanding Futures Markets, Prentice Hall Inc.,

New Delhi.

Kolb, Robert : Financial Derivaties, New York Institute of Finance, New

York.

Marshall John F. and V.K. Bansal : Financial Engineering : A Complete

Guide to Financial Innovation, Prentice Hall Inc., New Delhi.

Report of Prof. L.C. Gupta, Committee of Derivatives Trading.

Report of Prof. J.C. Verma, Committee Report on Derivatives Trading

4.7 : PROJECT REPORT AND VIVA-VOCE Every student shall have an appropriate topic selected for Project Report at

the beginning of the Fourth semester and shall submit the same within

one month of start of the IV Semester and face a viva-voce at the end

of fourth semester for evaluation, each carrying 50 marks.